THE Grain Growers Association is moving to eliminate controversial standing proxies used in the company's ballots.
Standing proxies are voting powers transferred by shareholders to their proxy on a perpetual basis unless revoked by the shareholder.
GGA chairman John Eastburn wrote to holders of standing proxies on January 20 asking them to approach their proxy donors to directly vote at this month's annual general meeting.
If there was no response by the proxy holder by January 27, GGA would approach the proxy holders through its share registrar, Computershare, to encourage direct voting.
Voting directly in board elections and other company ballots automatically revokes the standing proxies.
But showing up to the AGM in person to vote does not override a standing proxy.
Mr Eastburn told The Weekly Times that although they were not illegal, standing proxies did not put the company in a good light.
However, some standing proxy holders have questioned the board's motives.
They want undertakings the GGA board directors will also allow their own standing proxies to be relinquished.
One standing proxy holder, who did not wish to be named, said if ordinary shareholders relinquished their proxies and directors kept theirs, the balance of power further would be shifted in favour of the current board.
Standing proxies have been controversial ever since the Victorian Farmers Federation introduced them to influence ballots in a number of grain companies, including GGA.
The VFF's standing proxies in GGA were largely used to support the board's position at elections and other ballots.
But when the GGA board attempted to remove popular director Rick Freeman in 2005, a number of other shareholders also accumulated large numbers of standing proxies and other proxy votes.
Current GGA director Gerry Lane is believed to be one of the biggest holders of standing proxies.
Mr Lane had almost 300 standing proxies in 2006 and later used them to help get himself elected to the GGA board.
He said he did not know how many standing proxies he currently held, as many of the original ones held had been revoked.
"I think I would have hardly any now," he said. "At the last AGM, standing proxies had no influence on the voting."
Retiring GGA regional committee member and standing proxy holder Peter Mooney said he did not think there was "a snowdrop's chance in hell in Gerry Lane and John Eastburn relinquishing their standing proxies".
But Mr Eastburn said all directors had received the same letter sent to standing proxy holders asking them to approach shareholders appointing them as standing proxies.
"None of the directors had a problem with that," he said.
"If they didn't approach standing proxy holders themselves, Computershare would send them a letter."
Some standing proxies had not received the chairman's letter by the January 27 response deadline, but Mr Eastburn said it would be extended if a proxy holder wanted to bar Computershare from approaching shareholders.
GGA will hold its AGM in Albury on February 18 at 10am.
Directors Spencer Millear and Mr Lane are being challenged for a board position by Woomelang's Chris Kelly.
Mr Kelly has been a member of the regional committee for the past six years but has also spent more than five years on the Birchip Cropping Group board.
In the other election, Pullabooka grower Daniel Cooper is challenging current director Steve Hargreaves.
